New growth-oriented covered call ETF seeks to lower volatility and pay high current income on a monthly basis.
CHICAGO, Aug. 22, 2024 (GLOBE NEWSWIRE) — Amplify ETFs announces the launch of the Amplify CWP Growth & Income ETF (NYSE Arca: QDVO). QDVO seeks to deliver a high total return through the capital appreciation of growth-oriented equities and a high monthly income by opportunistically writing covered calls1 on individual stocks.
QDVO joins the Amplify CWP Enhanced Dividend Income ETF (NYSE Arca: DIVO), which is 5-star Morningstar rated*, and the Amplify CWP International Enhanced Dividend Income ETF (NYSE Arca: IDVO), in Amplify’s growing income suite that aims to generate enhanced income through the use of tactical covered call writing and dividends.
“QDVO is an exciting addition to the Amplify lineup and partnership with Capital Wealth Planning (CWP). QDVO is designed to capture investors’ enduring appetite for growth while providing high monthly income potential, empowering them to optimize their portfolios in various market environments. We’ve been very pleased with the engagement in DIVO and IDVO and expect QDVO to complement those strategies. QDVO represents a timely strategy for those looking to balance their growth with income generation,” said Christian Magoon, CEO of Amplify ETFs.
QDVO strategically invests at least 80% of its assets in growth-oriented U.S. equities, complemented by a tactical covered call writing strategy to generate additional income. As an actively managed fund QDVO focuses on large-cap stocks with growth potential, aiming for high total returns through capital appreciation and current income from option premiums and dividends. QDVO seeks to generate approximately 4-6% of the income from option premiums and up to 2% from dividends. The portfolio is constructed to capitalize on growth opportunities within the Russell 1000 Growth Index, with a diversified approach to sector and stock weightings to optimize risk-adjusted returns.
“We are excited to expand our relationship with Amplify ETFs in offering QDVO, allowing investors access to a growth-oriented and high-income risk-adjusted strategy,” said Kevin Simpson, CEO of Capital Wealth Planning.
Investors can learn more about QDVO at AmplifyETFs.com/QDVO.
About Amplify ETFs
Amplify ETFs, sponsored by Amplify Investments, has over $9 billion in assets across its suite of ETFs (as of 6/30/2024). Amplify ETFs deliver expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.com.
| Sales Contact: Amplify ETFs 855-267-3837 info@amplifyetfs.com | Media Contacts: Gregory FCA for Amplify ETFs Kerry Davis 610-228-2098 amplifyetfs@gregoryfca.com |
1 A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security.
* Based on risk adjusted returns among 71 funds in the Derivative Income category (as of 6/30/24)
Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.
You could lose money by investing in the Fund. There can be no assurance that the Fund’s investment objectives will be achieved. The fund is new with limited operating history. The Fund will forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. Growth stocks tend to be more volatile than certain other types of stocks and their prices usually fluctuate more dramatically than the overall stock market. Large-capitalization companies may be less able than smaller-capitalization companies to adapt to changing market conditions. The Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund.
© 2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. DIVO received 5 stars among 71 funds in the Derivative Income category for the overall, 4 stars among 71 funds for the 3-year, and 5 stars among 65 funds for the 5-year periods ending 6/30/24.
Amplify Investments LLC serves as the investment adviser to the Fund. Capital Wealth Planning, LLC and Penserra Capital Management LLC each serve as investment sub-advisers to the Fund.
Amplify ETFs are distributed by Foreside Fund Services, LLC.
